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FOX Business After the Bell

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Us 9, S&p 8, Groupon 7, U.s. 7, Blanche Lincoln 5, Lifelock 4, Liz 4, Humana 3, Caterpillar 3, Barnes & Noble 3, John 3, Lauren Simonetti 3, Maury 3, Tim Evans 2, United States 2, Ryan 2, Paul Ryan 2, Boeing 2, Adam Shapiro 2, Wells Fargo 2,
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  FOX Business    FOX Business After the Bell    News/Business. Stock  
   market updates. New.  

    September 24, 2012
    4:00 - 5:00pm EDT  

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barron's has a down arrow, $15, so who wants to pay 20 or 30 for that matter? google, on the other hand, hits a new all-time high on positive comments from citigroup. liz: and coal stocks taking a hit today, quickly. >> reporter: downgrade over at bank of america, and just out of favor. some people are moving to natural gas. david: all right. well, the bells, as you can hear, are ringing on wall street. the dow and all of the indices finishing to the negative but just so. the dow jones industrial average down about 18 points, s&p down about three, nasdaq down a little over 19, and the russell 2000 taking down about a half a percentage point, 3.73 to the downside. liz: how about oil though? take a look at how oil ended the session, david. as you see, we moved lower, and in the after market down 93 centss, up off the lows, but nonetheless, when you have a stronger dollar, you often have weaker oil. david: gold is an interesting story here because a lot of investors still, they wanted to be long going into the weekend,
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but they sold today. a lot of people think it's because they were just taking their profits, getting ready for another run. and we'll be talking more about it with david steinberg in just one minute. liz: what does that do? it helps push another thing higher, perhaps? lower oil pushing the transports up, ending the session up 50 points, that's a good chunk of green there. all right, when the bells ring, the action really begins. this is a big week for your money. we've got two top fund managers to tell you exactly how to play it. david: also, the ceo of living social is joining us in a fox business exclusive. what are they doing to stay ahead of the competition? could an ipo be in the near future? liz: how about spider-man on broadway tickets to butt a penny compared to what the real price is? but first, today's data downloads. stocks did fall, altering major indices close anything the red. we had utilities and telecom the best performing while technology and energy tended to be the
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biggest laggards. palladium and platinum, how about that? these are two elements used often in the automotive industry, they tumbled on growth worries and easing labor tension in south africa. palladium itself posted its biggest one-day drop in six months, closing down 4%. platinum down 1% at $1,622 an ounce, and lots of action in the currency pits today, so look at the euro. the euro fell to its lowest level in more than a full week versus the dollar and the japanese yen, hitting a session low of about 128.89 as weak german economic data renewed concerns over europe's debt crisis. david: we have all of those issues covered today in this hour, we have john brady in the pits of the cme where traders are furiously making their last trades before the end. maury is here to tell you why now is not the time to buy equities. david steinberg breaking down why he thinks most investors
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have actually misallocated their portfolio, he'll tell us why. let's start, first, with john at the cme. john, europe seemed to spook the market today, and it wasn't a real hard, down, negative turn, but it certainly was like a nagging stomach ache all day, right? >> that's right. maybe an issue that doesn't go away. and the smoulders continue to bush in this fire, david -- burn in this fire. spain will make their budget and france on friday for 2013 public. but they're still wanging between the germans and the spanish specifically as it regards a formal spanish request for a wailout. so the market doesn't like the fact that the fire's not out, the deal's not done, that it continues to smoulder, and i think you saw that price action in both the euro currency and weigh on european and u.s. equities today. liz: well, except for the fact that, yes, u.s. and european equities get weighed upon, but when you stretch it out, this is
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going to be the first september in quite some time where we've done pretty darn well, and then we also have year-over-year numbers. the dow up 26%, the russell charging ahead, the nasdaq looking unbelievably strong, so it makes you just wonder as we speak to an investor audience, john, what happens between now and the end of 2012? >> well, liz, the market will probably continue to grind higher, but it's not going to grind higher on the back of fundamentals. there are still major problems out there. china and japan, the european situation, some would even argue that syria and israel and iran are going to be a problem -- liz: okay, but i guess what i'm trying to say is fear, fear, fear, all of those things have been in place all summer long, and yet we move higher and higher. so isn't the play simply not to fight the tape? >> yeah, i think you're right. global central banks continue to add liquidity in here with just simply forcing asset prices higher and higher, and climbing this wall of fear. i think that's going to continue here. but investors want to stay nimble. there are signs out there, storm clouds on the horizon.
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not just what i mentioned, but these strange price actions in silver and gold, liz, especially last night in early asian trade, and also the performance of the dow transports are suggesting that investors want to stay long, you've got to be careful. david: okay. one reason you want to be careful is because durable goods orders haven't been that strong, big numbers coming out on thursday. by the way, boeing announcing one new plane in all of august. they had 26 o-- 260 in july. that one figure has worsened, has it not? >> absolutely, david, absolutely. and here's something else, too, in fact, i would argue this is slightly a bit more important. last night equity prices and metal prices have been moving together since both the united states federal reserve and the bank of japan lored interest rate policy and put in additional stimulus in the global economy. last night silver and gold cracked, and there were a lot of people shaking their heads as to why the metals cracked, and there is perhaps talk out there there were large derivative positions out there that perhaps
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silver gets above $36 an ounce, you could see a large short covering trade. so be careful. but the fact that gold and silver cracked in this global, aggressive central bank easing campaign doesn't make sense either. david: no, no. of course, it was a crack. it may come back. john, we're going to be talking more to you when the s&p futures close in just about ten minutes. thank you, john. liz: thanks john. let's bring in maury, chief investment officer of relative value partners and david steinberg. both these gentlemen a lot of experience in the markets and a lot of money that they work with. david, you're a bit more optimistic right now, and as we look at the s&p 500 which is certainly up over the past year, pretty strongly, i was looking at the numbers -- sorry, excuse my turn there, s&p up 28% year-over-year. >> right. liz: you know, our investors are wondering do we do what the journal had the article about in the money and investing section today which, in essence, said
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take the rest of the year off? people have done very, very well for the year, so would you just keep your powder dry at this point, or do you dive continuously into stocks? >> well, i was here last december, we had a discussion, i was bullish. i said, look, the moons are lining up for great capital markets. most investors do fear, anxiety, wall street's recommendations and so forth. ignore the math, the mathematics of valuation. not necessarily what's going on on the ground at the moment, basic valuation of businesses piled into bonds over the last year, and very simply you've got all the central banks in the world, the federal reserve, the bank of japan, the europeans as well as the chinese stimulating. they want asset prices higher, they want home prices higher. and when you print money, assets go higher, and the barter value of currency falls. that's why gold, as an example, is one of the most highly inverse-correlated assets to the printing of money. it always has been through the millennium, no matter who's run
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the contrary, what king, what queen -- david: which is why, david, your largest exposure -- maury, we're going to get to you in just a second -- is in gold mining stocks. but does today's crack concern you at all in the price of gold? >> absolutely not. things aren't linear, they don't go in a straight direction, and as long as you see these major government entities continue to print money, gold's going to go higher, and it's going to bring gold miners higher. gold miners, you can look at them as the printing presses for gold. liz: maury, you're a bit more cautious. what do you need to see before you'd be ready the at least dip your toe back into stocks? >> well, we are long stocks, we have a 55% weight under balanced account, so i'm longer term bullish, but i just have some near term concerns. primarily, they revolve around the rebalancing potential. we have an s&p up 4% this month, 7% for the quarter, so you could see some selling of stocks, buying of bonds to put
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portfolios in line. in addition, earnings season starts in two weeks, and i'm not so concerned about the third quarter results as i am about the fourth quarter guidance. there could be some caution expressed, some lack of clarity due to uncertainty of tax policy and the election. and finally, i think the most important thing that i look at is sentiment. sentiment has gotten quite bullish, the vixx around 13, 14, historically, is not a good short-term entry point. there's more inflows into equity mutual funds in the last two weeks than in the last year. so those are things that make me cautious on putting new cash in the market today, but i wouldn't be a seller. i think we're talking more of a tactical move, and something less than a 5% correction. david: david, we whetted the appetite of folks out there in terms of what gold stocks you're interested in. barnett gold, and is it yamana? why those in particular? >> well, they're big household names, at least in the gold sector, the gold universe. they're trading at discounts to
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what they've got in the ground. they're really well run, in my eyes. i think yamana hit a new high. barrick is coming off of its back after a change in management due to short-term performance issues. these companies trade new york stock exchange, they're held in all of the etfs. there's probably a slew of about 6-8, you know, major players in the new york stock exchange list that have -- david: you've got a couple of oil stocks, marathon and conoco, again, betting against everybody's concern about economic growth. >> yeah. i'm not looking at short-term, these short-term variables. it's a lot of noise, and it's always around us. but i think you need to look out beyond the noise and say what's going to happen over the next three to five years with the per capita demand from emerging markets around the world? what's going to happen to the money printing? and these things are going to effect the price of oil as well as the price of gold. and if you've got good reserves, you're at a big discount to
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market prices, you're going to get your money out. liz: and, maury, you're not entirely opposed to getting into gold a certain way. tell investors how you're doing it. >> we're doing it through the etf gdx as one, basically owns a lot of the companies that david just talked about, but you own a basket of these stocks. we think if you look at the metal, it has underperformed gold by 30% this year, gdx is flat on the year versus a 16% rise in the s&p, and i think these companies have underperformed, and they'll potentially be able tofá raise dividends. you may see some mergers in this space that would, basically, help the overall profitability. so i think that's another good way to play the sector. liz: our thanks to maury and david for sharing their thoughts. thanks, guys. >> thank you. david: well, republican vice presidential candidate paul ryan hitting the campaign trail in ohio today, sitting down with our own rich edson in a fox business exclusiveq interview.
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liz: and watch outxd groupon. living social, we've been branching out into live events, things like spider-man on broadway. all kinds of courses on how to trade stocks. they are looking to grab more market share from a floundering groupon. the ceo joining us in a fox business exclusive to talk about the company's new strategy, maybe tell us if an ipo is in the near future. david: also, former democratic senator blanche lincoln is looking at regulation with a different pair of eyes these days. she used to write the regulations, now not so much. she joins a small business group fighting government regulation. so why the change in heart? we'll ask her straight ahead on "after the bell." ♪ [ male announcer ] what if you had thermal night-vision goggles,
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liz: right now s&p futures are closing, let's go back to john brady at the cme group. hi, john.
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>> hi, liz. we squeezed a little higher all during the course of the day. the price action technically was rather positive. now, we expect a quiet night during asian trade, and most eyes will remain on european equity market performance early in the session tomorrow. there's still going to be some smoldering senders within the european community, specifically between spain and greece and germany. we'll see how the markets open up tomorrow morning, but till a pretty positive -- but still a pretty positive day technically. david: i bet that smoldering continues for at least another five years. [laughter] good to see you. shares of barnes & noble seeing a nice pop today, let's head back to nicole on the floor of the nyse for somewhere details. >> reporter: you're right, we did see a nice pop for barnes & noble, that's the parent of the stores that we know, the nook e-reader. take a look, shares up 6.6%, certainly a big move for barnes & noble today. one of the reasons, at least mark newton over at gray wolf
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saying the possible rise can be attributed to some short covering. there's been, obviously, the short interest ratio has been extremely high, so it has come down month over month. it still is extremely high, and he said this short-term bounce could continue even as he looked to 1425, maybe 1450, so at 1273, talking about some upside potential still. liz: republican vice presidential nominee paul ryan hit the campaign trail in ohio. david: and our very own rich edson sat down with the vp nominee in a fox business exclusive interview. rich? >> reporter: well, david and liz, the questions surrounding the romney/ryan campaign now is basically why they're not doing any better. you've got a weakened president, eight percent plus unemployment, and you see the president beginning to show momentum here in the key state of ohio, down in florida. ryan basically tells fox business that eventually voters will start to see how bad the economy is, and they'll begin to
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come around to romney and ryan. we also spoke about taxes, more specifically, governor mitt romney's taxes and his 14.1% effective tax rate. ryan says under their new tax plan that governor romney would actually end up paying more. ♪ >> our pro-growth tax reforms are to lower tax rates for everybody by plugging loopholes starting with people like mitt romney -- >> reporter: so he would pay more? >> yeah. here's how it works. higher income people can use lots of tax shelters to shelter some of their income from taxation. close those tax shelters, more of their income is subject to taxation, that allows us to lower tax rates for everybody. >> reporter: ryan says with tax reform, their tax reform, they could create seven million jobs in the united states, so that is something that the romney/ryan campaign has really deferred to congress and the house ways and means committee, so it could be a pretty sloppy legislative process next year. back to you. liz: thank you, rich. rich edson with the exclusive
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interview on the campaign trail. david: former democratic senator blanche lincoln is switching gears and joining a fiercely independent small business group looking to stop what it calls a tidal wave of federal rules. so why the change in her? we'll ask her straight ahead. liz: and the daily deal site wars continue to heat up as living social, one of the very popular once, pushes into the live event space. things like the harlem globetrotters. the ceo of the company joining us exclusively with a look at their branding strategy. this is a fox business exclusive. they're trying to capitalize on groupon's success. ♪ ♪ [ male announcer ] you are a business pro.
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liz: time for a quick speed read of some of the day's headlines. let's go, first up, rvs planning to cut 3 00 more jobs by the end of next year, this brings the total number to 3800. boeing winning a $1.9 billion contract to build 11 more surveillance planes for the u.s. navy, the navy expects to start using the planes next year. toyota scrapping plans to focus on a mini car to focus on its hybrid line. dave and buster's set its ipo range, the nationwide arcade chain seeking to sell 7.7 million shares at $12-$14 per share, the company will trade on the nasdaq under the ticker symbol play. trader joe's recalling peanut butter linked to salmonella cases in 18 states. the fda said the store's
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valencia peanut butter is likely the source of the outbreak. creamy salted valencia. that's today's speed read. david: i won. difference between an underdeveloped country and a developed country is whether or not they have peanut butter. all right, no way to get a clear fix on the price of oil, looked like we might get a price footing at the end of last week's slide, so what is really driving the price of oil? liz: let's ask tim evans, and, tim, i know you've been living and breathing this for quite some time, but lately what is it you see that gives you the answer? >> well, there's not necessarily, as you suggested, there's not necessarily a very clear answer at the moment. we've got some upward price pressure, the quantitative easing is a support for investor appetite for risk. but you have enough supply in the market for the fourth be quarter if the north sea comes
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back on line as expected, you could run a surplus of about 650,000 barrels a day. david: doesn't it say what's happening to the price of oil that neither mideast violence, which usually spikes oil, nor the fed easing -- and tremendous easing, must have more easing than we fought they were going to do -- is more important than world demand? if the world economic growth is slowing down, that trumps everything, and that brings down the price of oil. >> right, right. basically, the underlying demand growth that we're seeing from last year on into this year and projected forward into next year is about 1% year on year. now, that's still positive, but it's below the long-term trend growth of more like 1.7% globally. so in this soft growth environment, supply is more easily able to keep up. liz: well, yeah. i mean, the fundamentals would speak volumes about the fact
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that oil should be lower, so my question to you is, what's the next stop? $80 a barrel or $100 a barrel? >> well, um, it might be $80 a barrel for the u.s. west texas intermediate price, might be $100 for the brent price at the same time, brent trading 109 and change today. david: by the way, we have a lot more oil coming online as a result of the north sea. those operations had been put on hold while they did maintenance. >> correct. david: now they're being released, so we're going to see a lot more supply from the north sea. >> yes, yes. so total non-opec production should be about 700,000 barrels a day higher in the fourth quarter than it is in the third quarter. liz: well, this is all about people watching and saying what should i do and what should i add or take away from my portfolio to make me money for my retirement, my pension, my 401(k)? there are the big integrated
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oils, there are the drillers, the oil services companies like the schlumbergers out there. >> right. liz: what do you think is a beneficiary of the current atmosphere? >> well, um, i'm more of an oil price expert than i am an equity -- liz: of course. but yet you could still pursue the logic of whether it's the refiners that may do well or whether it would be the -- >> well, i think, you know, i think at current price levels, certainly, every producer on the planet should be making money at these kind of price levels. liz: sure. >> and with a significant profit margin. so i don't think that there's a lot of risk that you're going to see upstream oil producers posting a loss anytime soon. so that takes some of the, some of the fear factor out of things as far as, you know, whether you wallet to invest it now -- want to invest it now. david: one of the most exciting
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things happening with oil right now is the discovery of shale oil and the ability to use the fracking process which could create energy independence for the united states. >> absolutely. david: it is a very exciting process -- prospect. unfortunately, as the price comes down, people are less into it because the incentives are not necessarily there for it. might the lower prices sort of forestall some of the discovery that's happening there? >> we've seen a little bit of slowdown in terms of the number of drilling rigs at work in the u.s. in these oil fields. little bit less enthusiasm out there. but the growth rates are still very aggressive, and so -- david: i'm glad to hear that. >> overall, u.s. oil production is running 6 to 700,000 barrels a day higher than a year ago. liz: we cannot let you go without looking at arbob gasoline and, again, we understand this per-gallon is the wholesale price, not what you folks are paying at the
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pumps. but at what point do we really start seeing it come down as meaningfully as we've seen crude oil prices come down? >> well, we had a setback in that regard in that hurricane isaac shut a few of our refineries in louisiana. and so that resulted in some drawdown in inventories. u.s. gasoline inventories overall are currently the lowest since october of 2008. liz: oh, okay. >> now, that tightness from 2008 was also related to hurricanes. so we're, um, in a similar situation. it'll take us some time to get those inventories back. david: well, i'm glad to hear that shale oil is still, that discovery's going to continue going on because south dakota has a, what, 3% unemployment rate? it ain't for nothing. tim evans, thank you very much. liz: we've got breaking news. let's get to adam shapiro. >> caterpillar trading down 2% after the close because they
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revised their revenue outlook looking forward to 2015, and it's just not good news. first of all, they're looking at a profit range of $12-$18 per share, previous forecast was $15-$20 a share. more signs of a slowing global economy, liz. liz: yeah, i would think so. again, 2015 earnings per share $12, eps 18 for caterpillar, so we're watching that very closely and, obviously, the stock is taking a hit on that news. thank you, adam. watch out, groupon. we've been talking about living social, the daily deal site that's way more sort of locally focused. they want to offer you more ways to live it up in your neighborhood as they expand into the live event space. we're talking to the ceo this a fox business exclusive, that's next. david: meanwhile, has former senator blanche lincoln seen the light on harmful regulations now that she's left the senate and is working for small, independent businesses? we'll ask her if she's ready to repent. that's next.
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see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. liz: i'm stunned because i'm looking, well, these aren't major, major moves for the market but as we look at today's market drivers here is what happened. stocks slipped further today a little bit with all three major indices closing in the red. utilities and telecoms were today's best forming -- best performing sectors. gold neared seven month highs last week. the precious metal was down $13.40 an ounce. we were watching silver very closely. it closed down 1.5% to $33.91 per ounce. oil, some of this is because a stronger dollar.
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oil fell 1%, settling below $92 a barrel on worries of a weaker economic growth. oil ended down $87. david. david: too often politicians get a pass for all the rules and regulations they create for the rest us. it is only when the politicians go out in the real world they realize how stifling those regulations are. that revelation may be dawning on our next guest. we have former senator blanche lincoln working for the independent federation of businesses. >> great to be with you. david:. one politician i dealt with. that was george mcgovern. ran for president and senator for many years. after he got out of politics he opened a small hotel. that hotel went bankrupt because of some rules and regulations he himself had written. he wrote an article in the "wall street journal" regretting that i wished i during the years i was in public office i had
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first-hand experience about difficulties business people face every day. did you have the same kind of regrets once you realized what small businesses were going through? >> no. i don't have any regrets about my time in the senate. i enjoyed it thoroughly and worked hard as a good moderate pro-business --. david: let me stop you right there, senator. you never wrote any regulation that was excessive or was not a part of any regulation that was excessive? >> mostly what happens we do leave a lot of latitude for the agencies in terms of the regulations that have to be written. we try really hard or i used to and i know other senators and members of congress do, not to micromanage what they're doing but set the parameters. then leave it up to the agencies with the latitude to be able to put into place with even further input from, you know, the general public and businesses to be able to come up with regulations that work. david: but those businesses
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are is frustrated, senator. >> they are. you better believe it. david: because they don't, they don't get the hearing that they need, that they deserve. they try to get feedback. they don't get a listening ear. >> right. that's one of the things we're asking for and i worked continually with the nfib when i was in the senate. i'm proud to be working as a spokesperson for sensible recs.org which is a great effort we put forward to focus on that. every president back to reagan has executed presidential orders to clean up the regulatory mess that exists. what we're asking is not to eliminate all the regulations. we think there are some that are good but there are a lot more less important or not that good. david: let me talk about this, senator lincoln. one specifically. one thing that mcgovern said also that one size fits all rules for business ignore the reality of the
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marketplace. i was thinking of dodd-frank which treats the small banks basically same as the big ones. and the small banks are getting killed. >> no, they're not. the small banks are not getting killed. david: we have them on all the time, senator. i will give you names of ones we have on say they are getting killed. >> okay. well, i'll tell you what. there were a lot of banks in a lot of positions where they shouldn't have been. we tried very hard not to treat them all as the same. the small banks don't have all of the same regulations that some of the larger financial institutions. but the fact remains that we still have the best financial institutions in the world. and they have got an opportunity now, i think, to lead the world and in the world economy as we try to put it back into place. i think, you know, as we are continuing to work to grow our economy one of the most important things we can do is working with banks, particularly with small businesses is deal with it this tidal wave of regulations that are pending right now in washington. the worst thing coming out of washington right now is
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uncertainty and that's what small businesses and big businesses alike are having to deal with. and one of the things we're trying to do is insure that any of the candidates that are out there right now, running for congress or more importantly running for president, that we hear their voices and hear them talking about what it is they intend to do. as i mentioned every president back to ronald reagan has put out executives orders but --. david: hold on a second. let me correct you on one thing, senator. under president reagan's first term he had 9,000 regulations fewer as a result of genuine regulatory cutting that took place during his administration. whereas in the first term of the obama administration we have had 12,649 new regulations. so there is a big difference. >> we have 4200 pending regulations. that is tremendous uncertainty for small businesses to have to deal with it. one of the things we want to make sure, when we talk about, and we hear our
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candidates talking, whoever is going to be in the next administration, we want to insure that we have a commitment that they're going to come in and do some of that spring cleaning. david: let's hope. >> we're not just looking for agencies to come tell us all what they have on their books, that their books are full. we want to hear them saying they will be cleaning out and doing the spring cleaning and set into place a whole new regime how regulations will be built. and small businesses will have a place at that table. david: let's hope they do. senator blanche lincoln trying to make sure they will from the national federation of independent businesses. good to see you, senator. thanks for coming in. >> you bet. best way to put the economy on track. liz: what was the website. david: the website, senator? >> sensible regs.org. you will hear from a lot of small businesses there. david: good stuff, thank you, senator. appreciate it. >> thank you. liz: good start, definitely. in a fox business exclusive the ceo of living social is joining us. listen what they're doing is
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giving groupon a bit of a scare. at least analysts say they should. what are the future plans to stand out from groupon and put on an ipo in the future? david: after all the lines and hype and anticipation, apple's first weekend sales, well, guess what, they were big but they missed estimates. what could it mean for future sales? we've got details coming up. >> announcer: meet tom, a proud dad whose online friends all "like" the photos he's posting. oscar likes tom's photos, but he loves the access to tom's personal information. oscar's an identity thief who used tom's personal info to buy new teeth and a new car, and stuck tom with the $57,000 bill. [tires squeal] now meet carl who works from the coffee shop and uses the free wi-fi. marie works from there too. she's an identity thief who used a small device to grab his wi-fi signal, then stole enough personal information to hijack and drain his bank accounts.
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use promo code: be secure order now and get this document shredder, a $29 value free. [♪...] call or go online now. [♪...] >> i'm adam shapiro with your fox business brief. caterpillar shares are under pressure after slashing its outlook for 25th teen. the company now sees earnings per share up to $18 on revenue up to $100 billion, less than they had first started. oil settles at a seven-week low on renewed concern over the european debt crisis. stronger u.s. dollar also took a toll. oil continue their downward trend. drivers are seeing relief at pump. the price of gas is down six
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cents from a week ago. paychex reporting mixed first quarter results after the closing bell. earnings for the payment processing software company beat estimates by a penny at 4 cents a shear. revenue felt short of expectations -- 42 cents a share. that's the latest from the fox business, giving you the power to prosper. [ mujahid ] there was a little bit of trepidation, not quite knowing what the next phase was going to be, you know, because you been, you know, this is what you had been doing. you know, working, working, working, working, working, working. and now you're talking about, well you know, i won't be, and i get the chance to spend more time with my wife and my kids. it's my world. that's my world. ♪
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liz: groupon watch out. living social is expanding its business as it looks to take more market share in the daily deal website space. how will they do that? you have a slowing economy and a questionable consumer out there. here in a fox business exclusive, tim o'shaughnessy, living social ceo and cofounder. an interesting aspect, how do you separate yourselves? in a way you already have. you offer a more distinctively local experience but now you're going to live events. talk about that.
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>> absolutely. if you think about most live events that people do. they're inherently local. you go to the concert at the local stadium. you go to the beer fest down the street. and we really think that's a way where we can differentiate and grow what we're doing but providing those local offerings. for example, we have the living social craft beer and food truck festival we proud out to three different cities around the country and we'll continue to roll out where we have 5, 6, 7,000 people showing up at a time. liz: it is happy hour somewhere obviously. >> it should be more, too. liz: really should be. you're doing professional sports games, broadway shows, concerts. so i went on the site, first of all the site is beautiful. i'll give you that. >> thank you. liz: you guys are not public yet like groupon. one of the things immediately caught my eye spider-man on broadway. those tickets are not cheap. except the "spider-man" you have on broadway, that is not it. that is harlem globetrotters
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at bar kay center, local event. 37 bucks. i remember paying a more because i'm a globetrotter fan. those tickets at $79 the minimum ticket. if you get a house seat, not that easy. more like 150. how are you making deals and how are you offering them? >> there are a couple of ways we offer those types of events. one we have a partnership with a company called aeg which gives us access to put together the packages where we bring what living social does along with what they do in a lot of the major cities throughout the u.s.. knew they could sell capacity. could we create packages around things. that is how you see a lot of things on living social today. liz: there is another one i it is a food network experience in new york city. you get to meet with one of at least six celebrity chefs and get cooking classes,
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et cetera. these are things that catch people's eye more of an experience but at a lesser price. i also looked into it. we have analysts talk about you all the time. jordan rohan of stifel nicolaus says you narrowed your losses pretty dramatically. you're still posting losses but they have narrowed. that must mean business is going well. how are you capitalizing on a very tentative consumer? that is a tough thing to do? >> i think first it is important to understand we really have seen continued strength in our core business as we've grown over the course of the past year or so. so that, we look at that data and that looks good. i think second is, we really started to focus in more, how do we go and provide value to people financially but make their lives more convenient? expose them to something they didn't otherwise know. we really reached that point of scale in our business where we see some really strong economics come off of it by kind of expanding some of those offerings into events and that sort of thing.
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liz: it is a little bit after crowded space. there is gilt group and living social, and groupon not to mention amazon. critics are saying it is very saturated space. there is always that interest in going public. a, is an ipo in your future and b, how do you continue to separate yourself from the crowd? >> we look as something like ipo there are market performance items out there but it needs to be right for the company. that is something we consistently look at so there is nothing to report at this particular moment. liz: darn, i was trying. >> as far as the competitive landscape, you know you have really seen a couple of companies really be able to elevate themselves over the last year or go. i think we're one of those companies. now you're starting to enter it the next phase where living social built up 10 of millions of customers. hundreds of thousands of her can't relationships -- merchant relationships where we leverage those to go into local commerce.
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similarly amazon built up hundreds of customers and had the relationship to build up books and music and all those categories. liz: i remember how they did that can they survive on books. >> they have proven that one out. liz: sim, good to see you. we'll watch you continue to prove yourself. great to see a company growing. are you hiring, really quickly? >> yeah, we continue to hire well into the foreseeable future. liz: cofounder and ceo, tim shaughnessy. david: good stuff, cheap tickets. i phone 5 sales coming in way below analyst expectations. will a drop in apple's stock continue or will it be up again tomorrow? we'll explore that next
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liz: most people think this is great. apple's iphone find topping sales. david: they still fell short of analyst estimates. you have the expectations if it doesn't meet it. then there's a problem.
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fox business's lauren simonetti has the details. >> it is expectations. it is kind of a silly story, right? they sold more than five million in opening weekends. what analysts were expecting sometimes double. if you look what gene munster of piper jaffray said. op line preorders weren't counted. they're not counted until a customer gets delivery. in many cases that is in october and to sign for it so the number is likely set to go up. here is something you should consider. one with, 3 g hit the market. go from 3g to 4, 70% weekend rise. go from 4 do 4 s. see 135% rise. look at problem. 4 to 5 rose by 25%. it is in more markets now. nine countries this time for the first wave. versus seven for the 4 is. friday coming goes to 22
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more countries. is apple really trying to control supply to meet demand and meet when it hits the 22 more markets on friday? david: there is a lot more competition now? >> yes. certainly a lot more competition. apple shares were down 1 1/2%. not terrible, right? liz: not at all. >> up what, 73% this year? liz: earlier worse. not so bad right now. lauren simonetti, thanks so much. david: by the way, i won't let you get away. what do you think happens tomorrow, quickly? >> up. up and away. liz: time for the number one thing to watch tomorrow besides apple shares. july s&p/case-shiller home index. the index rose for the fifth straight month with year-over-year reading first positive reading in a year. economists expect 1% increase year-over-year. david: lauren simonetti, didn't say most important thing. it is your one-year anniversary. >> that is what i thought you would copd makes it hard to breathe,
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but with advair, i'm breathing better. so now i can be in the scene. advair is clinically proven to help significantly improve lung function. unlike most copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator working together to help improve your lung function all day. advair won't replace fast-acting inhalers for sudden symptoms and should not be used more than twice a day. people with copd taking advair may have a higher chance of pneumonia. advair may increase your risk of osteoporosis
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and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking advair. if you're still having difficulty breathing, ask your doctor if including advair could help improve your lung function. get your first full prescription free and save on refills at advaircopd.com. so let's talk about coverage. based on this chart, who would you choose ? wow.
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you guys take a minute. zon, hands down. i'm going to show you guys another chart. pretty obvious. i don't think color matters. pretty obvious. what'sretty obvious about it ? that verizon has the coverage. verizon. verizon. we're going to go to another chart. it doesn't really matter how you present it. it doesn't matter how you present it. verizon. more 4g lte coverage than all other networks combined.

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